Enter the annualized rental income ($) and the net effects of amortization of lease incentives ($) into the Calculator. The calculator will evaluate the Net Passing Income.

## Net Passing Income Formula

NPI = ARI - NEA

Variables:

- NPI is the Net Passing Income ($)
- ARI is the annualized rental income ($)
- NEA is the net effects of amortization of lease incentives ($)

To calculate the Net Passing Income, subtract the net effects on amortization

## How to Calculate Net Passing Income?

The following steps outline how to calculate the Net Passing Income.

- First, determine the annualized rental income ($).
- Next, determine the net effects of amortization of lease incentives ($).
- Next, gather the formula from above = NPI = ARI – NEA.
- Finally, calculate the Net Passing Income.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

annualized rental income ($) = 15000

net effects of amortization of lease incentives ($) = 1000